When you’re striving to make a success of a business, you need all the help you can get, and that’s where data and analytics comes in handy. Shipping analytics provide useful information on business performance, and business intelligence which combines data tools, data mining, and data visualisation to help you to make factual decisions.
Businesses can put this data and information to good use, but they still have to observe global trade regulations. There’s been much discussion over this in recent times, triggered, in part, by the UK deciding to leave the E.U. back in 2016. This decision caused a melee of debate and discussion.
Forging an Agreement
In the past goods were able to flow freely, but Brexit looked set to change all of that. Businesses feared for the future, concerned about the impact on trade and the possibility of tariffs on goods. Eventually, as reported by Alistair MacDonald via The Wall Street Journal, the U.K. and EU managed to forge an agreement regarding future relations.
This new trade agreement brought some resolution, but provided businesses with plenty to get to grips with. From January 1st of this year, goods such as motor vehicles and food could no longer move freely between the UK and the EU. Instead, new regulations and custom checks were put in place.
Export Rules and VAT
This has impacted on US export shipments, with the new regulations leading to more goods being declared to customs (around 200 million more to be precise). Northern Ireland follows EU rules, but the rest of the UK stands alone. The current trade deal covers the UK and EU – meaning there’s no additional VAT. However, at the moment the deal doesn’t extend to the US.
In the future this may change, but for now businesses have to adopt the World Trade Organization (WTO) rules. The UK has decided to follow a policy calling for imported goods (including US exports) below the value of 15 GBP to also be subject to VAT payment. It’s up to the seller to keep track of VAT payments.
A Need for Transparency
Businesses must ensure internal operations are transparent, and the arrival of the new VAT fees has brought this matter to the fore. Documents need to be spot on, accurate, clear and concise. Companies need to register for VAT and set up an IOR (Importer of Record). It’s more important than ever before to ensure operations are streamlined, errors are picked up and invoices/paperwork are monitored.
Freight Audit Services
Businesses can choose to do all of this for themselves, but It can be a challenge. There is an easier way – companies can ask for help from freight audit services. A reputable company, such as Betachon can carry out a regular freight invoice audit on your behalf – checking invoices, securing refunds for late deliveries, and helping you to take back control of our delivery costs. It’s time to carry out a freight bill audit and recoup some of your hard-earned cash!